China Doubles Down: Crypto Ban Reconfirmed Amid Escalating Stablecoin Crackdown

The Great Wall just got higher. China's financial regulators have slammed the door shut—again—on cryptocurrency, turning their focus squarely on the perceived threat of stablecoins.

The Regulatory Hammer Falls

Forget subtle policy shifts. This isn't a nudge; it's a shove. Authorities are moving beyond blanket bans to target the plumbing of crypto—specifically, the dollar-pegged stablecoins that power global trading. The message is clear: digital assets won't find a safe harbor here.

Why Stablecoins Are in the Crosshairs

Stablecoins represent everything that keeps a centralized authority up at night. They bypass traditional capital controls, operate around the clock, and challenge the monopoly on currency issuance. For a system built on managed capital flows, that's an existential threat—not just a speculative nuisance.

The Ripple Effect Beyond Borders

China's stance creates a stark dichotomy in global finance. While other jurisdictions tinker with regulatory frameworks, the world's second-largest economy is pouring concrete. This divergence forces every major crypto project and investor to pick a side: engage with evolving Western rules or operate in the shadow of an absolute prohibition. Some old-school bankers might secretly cheer—nothing props up a legacy system like banning the competition.

The crackdown reaffirms a fundamental truth. In the high-stakes game of financial innovation, some players aren't just changing the rules—they're burning the rulebook and building a new stadium next door. China has decided not to play.

— Cointelegraph (@Cointelegraph) November 30, 2025

According to the People’s Bank of China (PBOC), cryptocurrency assets stillin the country. The meeting included representatives from 12 powerful agencies, such as the Ministry of Public Security and the Supreme People’s Court, who jointly committed to boosting crackdowns on illegal activities involving digital assets.

Officials emphasized that the measures will strengthen and expand the country’s, targeting speculation, unlicensed digital asset activity, and crimes linked to VIRTUAL currencies.

Stablecoins Become a Priority Target

Authorities singled out stablecoins as a growing risk, pointing to widespreadandrequirements. Chinese regulators warned that stablecoins can be exploited for, posing a direct threat to the nation’s capital controls and financial stability.

China maintains one of the world’s strictest systems for managing capital movement. Regulators have repeatedly acted to limit crypto-related activities, including:

• August 2025: Securities firms were ordered to halt crypto-related seminars and suspend relevant research.
• September 2025: Authorities requested a pause on certain business operations in Hong Kong connected to digital assets.

Crypto Activity Reemerges Despite the Ban

Despite the ongoing prohibition, speculative behavior has quietly resurfaced. Individual cryptocurrency trading is believed to continue, aided by private channels and offshore platforms.

Notably, China’s presence in Bitcoin mining has grown again. As of early October, China accounted for, afrom the previous quarter. Mining operations have been slowly returning to energy-rich regions, where mobile mining units make enforcement increasingly difficult.

Historically, China’s mining industry supported an economy worth, and authorities are wary of allowing similar activity to proliferate again.

Beijing Prioritizes Monetary Sovereignty

China’s renewed clampdown reflects its broader strategy to protectand prevent digital assets from becoming channels for illegal capital movement. Officials say the tightening measures aim to prevent the financial system from being exploited by illicit fund flows.

Markets are now closely watching forthat could follow this latest declaration.

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